Hi there, JUNIORACCOUNTANT94.
You can record your vendor’s refund by creating a deposit transaction under accounts payable. Then you can link the bill and deposit by applying vendor credits. Let me show you the steps.
Step 1: Record the Bill transaction.
Step 2: Create a Deposit transaction.
Step 3: Link the Bill transaction and the Vendor’s Credits.
I added a screenshot for your reference.
For more information about the refund process to a different scenario, you can refer to this article: Record a vendor refund in QuickBooks Desktop.
Do you have questions in mind? Let me know right away so that I can help you out. Take care.